Time right for mass fragrances

Chain Drug Review, Sept 1, 2008

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NEW YORK -- While the fragrance business is going through a rough patch, mass fragrances have an opportunity to shine.

"The mass channel is well positioned in a challenging economy," says a spokeswoman for Elizabeth Arden.

She notes that the upcoming holiday season will be telling, and that marketers need to make shoppers see fragrance as a reasonably priced, giftable item.

While sales in the category fluctuate, two trends have clearly emerged: the desire for lower-priced/trial sizes, and the fact that celebrity scents are in more demand than ever and are now driving the business.

To that end, category-leading Coty Inc. is launching a bevy of celebrity-related fragrances in addition to those already on chain drug fragrance shelves.

The supplier has debuted McGraw by Tim McGraw, the first scent ever represented by the country music star.

"His bold masculinity and style make Tim McGraw the perfect partner for a new men's fragrance," says Steve Mormoris, Coty Beauty's senior vice president of marketing.

Following on the heels of this launch, Coty is introducing David and Victoria Beckham's Signature for Him and Signature for Her fragrances.

David Beckham's Signature for Him embodies the soccer star's vision and masculinity in a fresh wood and oriental fragrance, while singer Victoria Beckham's Signature for Her captures her fashion flair in a fruity floriental scent.

Meanwhile, the supplier continues to build on its successful Celine Dion franchise.

Earlier in 2008, Coty launched Celine Dion Sensational, a modem floral fragrance. The packaging mimics the silver and white rays of spotlights crisscrossing the stage. An oval bottle radiates light, which is awash in a pale rose blush, the color of the fragrance itself.

The Celine Dion franchise is an example of the power of celebrity cachet, with the franchise already capturing more than $500 million in worldwide sales.

Coty supports all of these celebrity brands with significant advertising, as well as "continually working with retailers to maximize the in-store experience," says Mormoris.

Just as Coty continues to mine its Celine Dion brand, Puig USA is expanding its popular Antonio Banderas franchise. The supplier's Blue Seduction for Women is currently appearing on the chain drug store shelves.

"I've had a long, successful relationship with Puig in Spain, Europe and Latin America, and I'm excited to be working with them to introduce the female counterpart of Blue Seduction for Men in the United States," says Banderas.

The product will carry a suggested retail price of $21.50 for the 1-ounce eau de toilette spray and $30 for the 1.7-ounce spray.

"Antonio Banderas Seductive Fragrances is a strategic brand for Puig USA," says Didier Main de Biran, the company's president. "The addition of Blue Seduction for women will help strengthen our position in the female 'masstige' category."

Besides the popularity of celebrity scents, there has been an upward trend in the sales of value-price body sprays targeted to young men.

This trend caught fire with the launch of Unilever's Axe brand, which not only garnered strong sales but restructured the entire men's fragrance category, with a number of competitors quickly jumping into the fray.

With men now purchasing more than 10% of all fragrances, marketers are now convinced that these popular, inexpensive body sprays provide a point of entry into the category for teenage boys.

A growing number of mass market retailers now display these body sprays in the traditional fragrance section of their stores, to educate these young men on what else is available in the category.